Investor Insights

This summary was created by AI, based on 3 opinions in the last 12 months.

The BMO REAL RETURN BOND INDEX ETF (ZRR-T) is a bond ETF designed to protect from the ravages of inflation. The real return rate is highly variable, with a long duration, low coupon, and nominal yields. It has been a tricky year for the ETF, but it is considered a nice complement to a bond portfolio, especially for those seeking inflation protection. However, it is recommended to own this ETF in a registered account to avoid tax complications. Overall, experts suggest owning real return as well as nominal bonds, but not going all-in on real return bonds.

Consensus
Mixed
Valuation
Fair Value
Similar
Vanguard FTSE Canadian Capped REIT Index ETF,VRE.TO
DON'T BUY
Why is the dividend falling?

Designed to protect from the ravages of inflation. The real return rate itself is highly variable, now they're under 2%, and they were negative a couple of years ago. Long duration, low coupon, nominal yields, risky. A messy security. Worst performers in the bond market last 3 years, by far.

E.T.F.'s
PARTIAL BUY

It's been a tricky year, but part of your bond portfolio that you really want in there. Longer term, these ones give you a coupon rate along with whatever the CPI is. Accounting is a bit funny, so owning them through an ETF and in a registered plan makes sense. Tax calculation tricky outside a registered plan.

Adds protection during inflationary shocks. Nice complement to your bond portfolio, just an allocated piece of it.

E.T.F.'s
PARTIAL BUY

If you want inflation protection and bonds. They take the CPI and add a spread. It's about inflation expectations. So if they're robust, they're already reflected in the bond price, then you won't see a big pop in the ETF price. Conversely, if they're underpriced, this ETF can perform. Real return bonds have struggled. Own this in a registered account to avoid tax headaches. You should own real return as well as nominal bonds. But don't go all-in in real return bonds.

E.T.F.'s
DON'T BUY
Would not recommend buying. Doesn't like real return bonds. Doesn't use this style of bond.
E.T.F.'s
COMMENT
Fine if you need to be in fixed income. But do you need to be in fixed incomes? There is duration risk. The challenge with real return bonds is that you get a higher payout but there is no guarantee for the inflation rate so returns may not be good. These anticipate rates but do not follow it.
E.T.F.'s
PAST TOP PICK
(A Top Pick Sep 17/20, Down 4%) Recommended this when he thought there was inflation coming. Real return bonds are set to offset the rising inflation. It does this with an inflation compensation in the price of the bond. The capital gets the CPI inflation tacked on.
E.T.F.'s
COMMENT
Real return bonds with rising inflation expectations will protect you. They have a small coupon and you get a top up that is the actual inflation rate. Tricky and on average do not recommend to average investors. If you believe there is sustained inflation, you could buy it. This is a vehicle that needs to be traded.
E.T.F.'s
SELL ON STRENGTH
It is all about inflation expectation and break even analysis. Inflation expectations have spiked considerably. We may not realize these levels for the next few years. Would not chase here. Hasn't added to it. Better to sell into strength since there are more deflationary forces. Have to watch wages. If they increase significantly, there will be real inflation.
E.T.F.'s
WEAK BUY
Inflation-protected bonds respond to interest rates and inflation expectations which are now low. If interest rates go down, then the price of the bond will rise. If inflation expectations rise, so will the bond. It you want to generate income, nominal bonds is not the place to do that. Real return bonds are slightly better. Inflation expectations last summer hit multi-year lows. Covid has forced fiscal policy to play a much bigger role. Real return bonds will pay decent returns over coming years, but the returns are low. Can't get excited over them. He likes this ETF, but you can look elsewhere around the world for income.
E.T.F.'s
TOP PICK
If we start to see slowing growth, plus inflation, and so stagflation, these are inflation-protected sovereign bonds. These are government of Canada bonds. You get the yield plus inflation. Nice complement to your bond portfolio. Yield is 2.14%.
E.T.F.'s
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BMO REAL RETURN BOND INDEX ETF(ZRR-T) Rating

Ranking : 3 out of 5

Bullish - Buy Signals / Votes : 2

Neutral - Hold Signals / Votes : 0

Bearish - Sell Signals / Votes : 1

Total Signals / Votes : 3

Stockchase rating for BMO REAL RETURN BOND INDEX ETF is calculated according to the stock experts' signals. A high score means experts mostly recommend to buy the stock while a low score means experts mostly recommend to sell the stock.

BMO REAL RETURN BOND INDEX ETF(ZRR-T) Frequently Asked Questions

What is BMO REAL RETURN BOND INDEX ETF stock symbol?

BMO REAL RETURN BOND INDEX ETF is a Canadian stock, trading under the symbol ZRR-T on the Toronto Stock Exchange (ZRR-CT). It is usually referred to as TSX:ZRR or ZRR-T

Is BMO REAL RETURN BOND INDEX ETF a buy or a sell?

In the last year, 3 stock analysts published opinions about ZRR-T. 2 analysts recommended to BUY the stock. 1 analyst recommended to SELL the stock. The latest stock analyst recommendation is . Read the latest stock experts' ratings for BMO REAL RETURN BOND INDEX ETF.

Is BMO REAL RETURN BOND INDEX ETF a good investment or a top pick?

BMO REAL RETURN BOND INDEX ETF was recommended as a Top Pick by on . Read the latest stock experts ratings for BMO REAL RETURN BOND INDEX ETF.

Why is BMO REAL RETURN BOND INDEX ETF stock dropping?

Earnings reports or recent company news can cause the stock price to drop. Read stock experts’ recommendations for help on deciding if you should buy, sell or hold the stock.

Is BMO REAL RETURN BOND INDEX ETF worth watching?

3 stock analysts on Stockchase covered BMO REAL RETURN BOND INDEX ETF In the last year. It is a trending stock that is worth watching.

What is BMO REAL RETURN BOND INDEX ETF stock price?

On 2024-05-24, BMO REAL RETURN BOND INDEX ETF (ZRR-T) stock closed at a price of $14.05.